2018 4Q Est Taxes due Tuesday

[scrabbler1]

One thing which mucked up my estimated taxes a few times over the years was the bad timing between the 4th quarter due date of 1/15 and the ~1/31 deadline for receiving the 1098 form which shows home mortgage interest and property taxes paid. A few times, my co-op got a large property tax refund during the year and that lowered the property taxes paid amount by a lot. This then lowered my itemized deductions and raised my taxable income. I felt somewhat blindsided by this development, so in future years, when it looked like I was going to itemize my deductions, I would ask my cop-op's managing agent in December if there were any large prop tax refunds during the year. I would then have time to adjust my 4th quarter estimated tax payment and not get blindsided at 1098 time.


If I knew I wasn't going to itemize, then it didn't matter. And with the new tax law doubling the standard deduction, it is very unlikely I will be itemizing again.

 

[MBAustin]

Just saw this from a CPA friend:

IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018

"The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

The waiver computation announced today will be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210 and instructions.

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017. "

 

[audreyh1]

Oh nice! This means I’m golden!

 

[MarieIG]

Just saw this from a CPA friend:

IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018

"The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

The waiver computation announced today will be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210 and instructions.

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017. "

Thanks, that is good to know.